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Synopsis: Gaurav Dua, Senior Vice President and Head of Capital Market Strategy at Sharekhan by BNP Paribas, shares his perspectives on three prominent stocks: Bajaj Housing Finance, Ola Electric, and Hero MotoCorp. While Bajaj Housing Finance has experienced a strong post-IPO surge, Dua advises caution for investors due to high valuations and suggests considering other upcoming IPOs. Regarding Ola Electric, he highlights the stock's initial surge followed by more attractive pricing opportunities. Hero MotoCorp, on the other hand, is viewed as a strong buy due to its improving volumes, favorable rural exposure, and potential gains from its electric vehicle (EV) venture, Aether.
Bajaj Housing Finance, a key player in the Indian financial sector, continued its impressive performance in the market, surging 10% to hit an upper circuit level of Rs 164.99 following its stellar IPO listing. However, Gaurav Dua from Sharekhan recommends caution at current price levels. He notes that the stock is trading at a price-to-book (P/B) ratio of 7-8 times, suggesting that investors might find better opportunities at lower levels. Dua attributes the rapid rise to FOMO (fear of missing out) and advises investors to focus on upcoming IPOs instead of chasing Bajaj Housing Finance at its current market price.
Ola Electric, another stock drawing attention, has exhibited volatility post-listing, initially jumping before settling at more attractive prices. Dua mentions that this pattern should serve as a lesson for investors currently considering Bajaj Housing Finance. On the day, Ola Electric shares rose 6.18%, reaching Rs 114.30.
Hero MotoCorp, a major player in the two-wheeler segment, is highly favored by Dua at its present valuation. He sees the stock as a solid buy due to improving sales volumes and a promising outlook, especially with its large rural market exposure. The company's EV arm, Aether, is another positive factor, as it plans to launch its own IPO soon. With these triggers in place, Dua is confident about Hero MotoCorp’s future, supported by a favorable monsoon and comfortable valuations. The stock saw a minor increase, rising 0.76% to Rs 5,819.55.
Meanwhile, Indian equity benchmarks witnessed a slight dip, primarily dragged down by the automobile, metals, and public sector banks sectors. Broader markets, including small- and mid-cap stocks, also traded in the red.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to perform their own research or consult with a financial advisor before making investment decisions.
